As reported in our earlier post today, most of the country’s real estate markets are feeling the effects of overproduction. A strong market hovers near a 1.5% vacancy rate, but the national average currently stands at 2.8% and in cities such as Miami, Atlanta and Denver, figures hang around 3.5%. In addition, every nugget of good news (a May Commerce Department report said that new-home sales are at a 14-year high) comes with bad news (median price growth is at a 10-year low).
As the market improves, there are several different recovery patterns that may occur. As reported in Forbes Magazine, differences in local conditions greatly affect the timing and type of any recovery.